Military

DATE=11/9/2003

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL/LEBANON (L-UPDATE)

NUMBER=2-309622

BYLINE=ROSS DUNN

DATELINE=JERUSALEM

CONTENT=

VOICED AT:

INTRO: Israel's cabinet has narrowly approved a controversial exchange of prisoners with the militant Islamic group Hezbollah in Lebanon. Ross Dunn reports from Jerusalem.

TEXT: The Israeli cabinet voted, 12 for to 11 against, to accept Hezbollah's demand to release hundreds of Lebanese and Palestinian prisoners to secure the life of one man.

Israeli Prime Minister Ariel Sharon staked his prestige on the deal to ensure the return of Israeli businessman Elhanan Tannenbaum, who was kidnapped by the Hezbollah three-years ago.

As part of the deal, arranged with the help of German mediators, Israel will also receive the bodies of three of its soldiers who were kidnapped and killed by the Hezbollah.

Israeli ministers said they were presented with one of the most difficult decisions of their careers, to bargain with a Lebanese group that has sworn to destroy Israel and is also listed as a terrorist organization by the U-S State Department.

Mr. Sharon told his cabinet that there was no choice but to accept the deal because a refusal would have resulted in the Hezbollah's executing Mr. Tannenbaum.

But many of the ministers opposed the offer, arguing that Israel will be seen to have rewarded terrorism by boosting the standing of Hezbollah in the Arab world and encouraging the kidnapping of more Israelis.

Some ministers also claimed the deal should have at least included the Hezbollah's agreeing to supply information on the whereabouts of a missing Israeli Air Force navigator, Captain Ron Arad.

He was captured after his plane was shot down over Lebanon in 1986.

Captain Arad's family claimed that by accepting the offer the Israeli government had given up any hope of finding him.

Mr. Sharon said the decision had not been easy, but he insisted that this did not mean the government had abandoned efforts to find the missing Israeli airman. (SIGNED)

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